[This article was updated February 3, 2025, at 5:20 p.m.]
The new administration’s long-anticipated tariffs against Canada, China and Mexico were officially announced Saturday. According to a White House fact sheet, the United States was set to implement 25% additional tariffs on imports from Canada and Mexico, and a 10% tariff on imports from China, beginning at 12:01 a.m., Tuesday, February 4. That plan remains in tact for China, though Monday morning multiple news agencies reported that Mexican president Claudia Sheinbaum struck a deal to postpone tariffs for her country by one month. Hours later, Canadian prime minister Justin Trudeau announced the same for his country. At press time, no similar reports had surfaced for China.
The official announcement came days after warnings were issued via an Oval Office press conference Thursday and an announcement by the White House Press Secretary Friday, confirming the administration’s plans. Prior reports suggested the White House would delay the rollout until March 1, 2025.
Should tariffs be instated after the latest postponement for Canada and Mexico, changes could potentially impact the door and window industries—both directly and indirectly—as tariffs on softwood lumber are expected to increase costs for residential construction, officials at the National Association of Home Builders (NAHB) warn. According to NAHB chairperson Carl Harris, more than 70% of the imports for softwood lumber and gypsum come from Canada and Mexico.
Manufacturers of doors, windows and skylights “are expressing significant concerns,” a statement released by the Window & Door Manufacturers Association says.
“Upon taking office, President Trump has expressed a commitment to advancing manufacturing in the U.S. while reducing the effects of inflation on consumers and making home ownership more affordable,” says John Crosby, WDMA president and CEO. Manufacturers believe the decision to impose tariffs on Canada and Mexico will have the opposite effect, he says.
“Over time, manufacturers and suppliers of components and materials for their products in Canada and [the] United States have developed a productive relationship,” Crosby says. “The result has been a healthy flow of components and materials across the border in both directions, as well as finished products for use in construction. This vibrant, cross border trade relationship has brought quality, good paying jobs to communities across the United States, often in small towns. Imposing new tariffs will slow job growth in these communities. The result is an industry that provides materials that are critical to the health, safety and welfare of building occupants that support affordable homeownership.”
Tariffs on lumber and other building materials will increase the cost of construction and discourage new development, Harris adds.
The move to impose tariffs on goods from Canada marks an abrupt change for some industries, after the Department of Commerce delayed its sixth annual review of duties on Canadian softwood lumber that was scheduled for February. The deadline was pushed back in December 2024 by as much as 90 days, postponing the release of updated tariff rates, which, at the time, were set at 14.5%.
Changes arrive at a troubling time for lumber, as prices began the year 8.7% higher than they were a year prior. According to Anirban Basu, chief economist for Associated Builders and Contractors (ABC), in December 2024, prices for softwood lumber were up nearly 12% year over year. Meanwhile, according to NAHB analysts, some of the largest mill curtailments and closures announced in 2024 took effect in January, eliminating around 670 million board feet of annual production capacity.
So far as why the new administration is raising tariffs, the White House claims the “extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA).” But the decision to use IEEPA to impose tariffs is unusual, says John Murphy, senior vice president of the U.S. Chamber of Commerce.
“The imposition of tariffs under IEEPA is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains,” Murphy says.
Canada retaliated with a 25% tariff on more than $125 billion worth of American goods, including beer, wine and bourbon, as well as fruit, clothing and household appliances. Prime Minister Justin Trudeau says Canada is also considering non-tariff measures.
Mexico also vowed to retaliate, with potential tariffs ranging from 5% to 20% on various U.S. imports, including manufactured aluminum, steel and food. According to Census Bureau data, the U.S. imported more than $474 billion worth of Mexican goods in 2023.
China officials say the country’s government will take action to defend its economic interests and plans to file a lawsuit with the World Trade Organization. A White House order states that should the targeted countries retaliate, the president “may increase or expand the duties imposed under this order to ensure the efficacy of this action.”
So far as broader impacts are concerned, Gregory Daco, chief economist at EY-Parthenon, told Politico that the combined tariffs could cause U.S. economic output to decline by 1.5% in 2025 and 2.1% in 2026. Canada, Mexico and China accounted for around $1.3 trillion worth of U.S. imports in 2024.
Goods already in transit to the United States before 12:01 a.m. on February 1, 2025 (the day executive orders were issued) are exempt from the tariffs.